Digital Ally Soars On Monster Volume After Profitable Q4

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.Digital Ally Inc. (NASDAQ: DGLY) shares are trading higher by $1.94 at $14.51 in Tuesday's session. The catalyst for the rally is its first profitable quarter since Q1 of 2013. The company reported EPS of $0.05 with revenues of $5,42M. This is compared to an EPS in Q3 of ($2.32) on revenues of $4.7M.That is the good news for shareholders. The bad news is the issue is trading way off its high for the session. Off the open,it sprinted to $16,27 before finding resistance. That level coincides with its December 30 high ($16.39). Since reaching that elevated level, there has been a major bout of profit-taking. Keep in mind, the issue began the week at $11.49.. The retreat has taken issue back in the mid $14.00 handle, where is attempting to stabilize and mount another rally.It should be noted today's price action is taking place on much higher than average volume. So far, it has traded 4M shares compared with its 20 day average of 420K shares.